Volatility, Concentration, and Top-Decile Returns

What separates great investors from generational ones—and how do you actually find the next Elon Musk? In this episode, I sit down with Mike Annunziata, Founder & Managing Partner of Also Capital, a solo GP fund backing the world’s most ambitious hard tech founders. Before launching Also Capital, Mike spent years at the Cornell University Endowment, helping allocate over $1 billion across venture and private equity managers—giving him a front-row seat to what “world-class” really looks like. We talk about how LPs identify the next top-decile fund managers, why the best founders are like amateur pilots, and how to find the tiny behavioral tells that separate the merely ambitious from the truly elite. From identifying credibility under pressure to understanding the physics of hard tech investing, Mike shares a rare, insider’s look at the art of backing outliers.

Highlights:

• How working at the Cornell Endowment shaped Mike’s investor mindset and revealed what “world-class” really looks like
• The difference between top-quartile and top-decile managers—and why early risk-taking defines greatness
• Why founders who combine ambition with credibility are the ones who build generational companies
• What venture investors can learn from Bain Capital Life Sciences and the power of early conviction
• The “amateur pilot” framework: how to identify founders who take disciplined risks under pressure
• Why great founders are magnets for talent—and how followership predicts success more than ideas
• The difference between competitiveness, urgency, and toxic culture in startups
• How AI is transforming hard tech—from edge computing to design cycles
• What it takes to spot a breakout hard tech company before anyone else does
• Why discipline—not deal-chasing—is the real driver of long-term venture success

Guest Bio:

Mike Annunziata is Managing Partner at Also Capital, where he invests in and supports hard-tech companies solving atomic scale problems—across aerospace, defense, robotics, advanced manufacturing, communications, mobility, and applied AI. Since 2019 he’s seeded companies now valued at over $2 billion including Radiant, Varda Space, K2 Space, and Northwood, which have collectively raised over $500 million.

Previously, Mike was Co-Founder & CEO of Farther Farms, a Series B startup out of Cornell University, and spent three years as Senior Investment Analyst at Cornell University’s Investment Office, allocating capital across venture and private funds. He holds a B.S. in Industrial & Labor Relations and an MBA from Cornell University’s Johnson Graduate School of Management.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

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X / Twitter: David Weisburd: @dweisburd

LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Mike Annunziata: https://www.linkedin.com/in/mike-annunziata-12853bb/

Links Also Capital: https://www.alsocapital.com

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

(0:00) Introduction (0:24) Understanding investment talent and managing risk (0:54) Identifying world-class funds and great managers (2:03) Example of early successful fund: Bain Capital Life Sciences (3:26) Building a brand and competitive advantage in investing (5:00) Traits of successful founders and top decile managers (8:02) Investment edge and volatility in venture strategies (12:27) Focus and diversification of Also Capital investments (16:54) Nonconsensus views and breaking down ambitious projects (19:04) High IQ and EQ in founders and early leadership signs (24:08) Competitiveness, sense of urgency, and mission-driven motivation (31:08) Impact of AI on hard tech startups and identifying big founders (36:08) Attracting top talent and advising young founders (41:10) Dynamics of high RPM vs. high gear in startups (44:20) Timeless advice and understanding pitfalls for new VCs (46:29) Balancing deal volume with founder quality and knowing your founders (52:19) Closing remarks